MiFID II › Level 2 › RTS
Full document Article 18 of 24 · 1 annex 18(1) 1. Trading venues shall have at least the following arrangements in place to prevent disorderly trading and breaches of capacity limits:
Copy link Copy citationArt 18(1) 2017/584 18(1)(a) (a) limits per member of the number of orders sent per second;
Copy link Copy citationArt 18(1)(a) 2017/584 18(1)(b) (b) mechanisms to manage volatility;
Copy link Copy citationArt 18(1)(b) 2017/584 18(2) 2. For the purposes of paragraph 1, trading venues shall be able to:
Copy link Copy citationArt 18(2) 2017/584 18(2)(a) (a) request information from any member or user of sponsored access on their organisational requirements and trading controls;
Copy link Copy citationArt 18(2)(a) 2017/584 18(2)(b) (b) suspend a member's or a trader's access to the trading system at the initiative of the trading venue or at the request of that member, a clearing member, the CCP, where provided for in the CCP's governing rules, or the competent authority;
Copy link Copy citationArt 18(2)(b) 2017/584 18(2)(c) (c) operate a kill functionality to cancel unexecuted orders submitted by a member, or by a sponsored access client under the following circumstances:
Copy link Copy citationArt 18(2)(c) 2017/584 18(2)(c)(i) (i) upon request of the member, or of the sponsored access client where the member, or client is technically unable to delete its own orders;
Copy link Copy citationArt 18(2)(c)(i) 2017/584 18(2)(c)(ii) (ii) where the order book contains erroneous duplicated orders;
Copy link Copy citationArt 18(2)(c)(ii) 2017/584 18(2)(c)(iii) (iii) following a suspension initiated either by the market operator or the competent authority;
Copy link Copy citationArt 18(2)(c)(iii) 2017/584 18(2)(d) (d) cancel or revoke transactions in case of malfunction of the trading venue's mechanisms to manage volatility or of the operational functions of the trading system;
Copy link Copy citationArt 18(2)(d) 2017/584 18(2)(e) (e) balance entrance of orders among their different gateways, where the trading venue uses more than one gateway in order to avoid collapses.
Copy link Copy citationArt 18(2)(e) 2017/584 18(3) 3. Trading venues shall set out policies and arrangements in respect of:
Copy link Copy citationArt 18(3) 2017/584 18(3)(a) (a) mechanisms to manage volatility in accordance with Article 19;
Copy link Copy citationArt 18(3)(a) 2017/584 18(3)(b) (b) pre-trade and post-trade controls used by the venue and pre-trade and post-trade controls necessary for their members to access the market;
Copy link Copy citationArt 18(3)(b) 2017/584 18(3)(c) (c) members' obligation to operate their own kill functionality;
Copy link Copy citationArt 18(3)(c) 2017/584 18(3)(d) (d) information requirements for members;
Copy link Copy citationArt 18(3)(d) 2017/584 18(3)(f) (f) cancellation policy in relation to orders and transactions including:
Copy link Copy citationArt 18(3)(f) 2017/584 18(3)(g) (g) order throttling arrangements including:
Copy link Copy citationArt 18(3)(g) 2017/584 18(3)(g)(i) (i) number of orders per second on pre-defined time intervals;
Copy link Copy citationArt 18(3)(g)(i) 2017/584 18(3)(g)(ii) (ii) equal-treatment policy among members unless the throttle is directed to individual members;
Copy link Copy citationArt 18(3)(g)(ii) 2017/584 18(3)(g)(iii) (iii) measures to be adopted following a throttling event.
Copy link Copy citationArt 18(3)(g)(iii) 2017/584 18(4) 4. Trading venues shall make public their policies and arrangements set out in paragraphs 2 and 3. That obligation shall not apply with regard to the specific number of orders per second on pre-defined time intervals and the specific parameters of their mechanisms to manage volatility.
Copy link Copy citationArt 18(4) 2017/584 18(5) 5. Trading venues shall maintain full records of their policies and arrangements under paragraph 3 for a minimum period of five years.
Copy link Copy citationArt 18(5) 2017/584